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• Revenue: EUR 581.1 million, marking a 1% growth and a new sales record for the fourth consecutive year.

• Gross Margin: 44%, consistent with expectations.

• Operating EBIT Margin: 25.1%, aligning with guidance.

• Reported EBIT: EUR 172.6 million, or 29.7% of sales, including special items.

• CapEx: Reduced to 7.6% from 20% the previous year.

• R&D Expenses: EUR 59.1 million, with an R&D ratio of 10.2%.

• Adjusted Free Cash Flow: Positive at EUR 5.1 million for fiscal year 2024.

• Car Production Volumes: Dropped by 1% to 89.4 million newly produced vehicles.

• 2025 Revenue Outlook: Expected to be EUR 580 million, with a range of plus or minus EUR 30 million.

• 2025 EBIT Margin Guidance: 23% plus or minus 3 percentage points.

• 2025 CapEx Expectation: Around 7% plus or minus 2 percentage points.

• 2025 Adjusted Free Cash Flow Forecast: Positive at 7% plus or minus 2 percentage points of sales.

• Warning! GuruFocus has detected 2 Warning Sign with XTER:ELG.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Elmos Semiconductor SE (XTER:ELG) achieved a new sales record for the fourth consecutive year, with a small growth of 1% to EUR 581.1 million in 2024.

• The company maintained a high operating EBIT margin of 25.1% in 2024, demonstrating resilience in a challenging market environment.

• Elmos Semiconductor SE successfully completed its transformation into a fabless company, allowing it to focus on growth potential without the burden of an owned front-end fab.

• The company has a strong position in China and is increasing its local presence, which is crucial for maintaining competitiveness in the world's largest automotive market.

• Elmos Semiconductor SE's innovative IC solutions and strong product pipeline position it well to benefit from long-term growth trends in the automotive semiconductor market.

Negative Points

• The global automotive market faced challenges in 2024, with production of new cars dropping by 1%, impacting Elmos Semiconductor SE's short-term visibility.

• Ongoing destocking effects and limited visibility in the short term have influenced the automotive semiconductor market, with a reported decline of around 7% in 2024.

• Elmos Semiconductor SE's gross margin in Q4 was lower due to year-end cut-off accounting and valuation effects, reflecting a conservative approach.

• The company faces challenges in maintaining high profitability and achieving its 25% EBIT margin target amidst pricing headwinds and a low growth scenario.

• Elmos Semiconductor SE's cash flow performance is conservative, with uncertainties in working capital development and potential cash outflows impacting projections.